Fantasy sports platform Sorare is facing charges of providing unlicensed gambling facilities in the United Kingdom, according to a report by CoinDesk. The company, which allows users to buy, sell, and trade digital collectibles of professional soccer players, has come under fire for allegedly running afoul of U.K. gambling laws.
The U.K. Gambling Commission launched an investigation into Sorare following complaints from users who claimed that the platform’s loot box-style mechanic constituted gambling. Under U.K. law, any game that involves a prize, chance, and consideration is considered gambling and must be licensed by the Gambling Commission.
Sorare’s digital collectible cards are obtained through a combination of skill and chance, with users purchasing virtual packs of cards in the hope of acquiring valuable players. The cards can then be used to build fantasy soccer teams and compete against other users for prizes.
The investigation found that Sorare had not obtained the necessary licenses to operate as a gambling platform in the U.K., leading to charges of providing unlicensed gambling facilities. The company now faces potential fines and sanctions from the Gambling Commission.
Sorare has defended its business model, arguing that its platform is a game of skill rather than chance. The company has emphasized that users have full control over which players they acquire and how they use them in fantasy competitions.
Despite Sorare’s arguments, the U.K. Gambling Commission is cracking down on unlicensed gambling activities in the country. In recent years, regulators have taken a harder line on loot boxes and other forms of in-game purchases that resemble gambling, especially when they target younger players.
The outcome of the investigation into Sorare remains uncertain, but the case has raised questions about the legality of similar fantasy sports and collectibles platforms in the U.K. and around the world. As the gaming and digital collectibles industries continue to grow, regulators are likely to scrutinize these platforms more closely to ensure they comply with gambling laws and protect consumers from potential harm.